APR Quotation Tables
Charlie Geimer (then of the Cambridge State Bank) now with Badger Compliance Consulting calls his office "Charlie's Compliance Cove." You can tell with a name like that for his office he spends quite a bit of time in there. Charlie has agreed to share one of the tools he created in the Cove.
Reg Z requires that when you provide a rate quote you provide the APR. That APR will include all finance charges but each lender can't get to a PC with the loan software that calculates the APR. So he used Excel to create tables of commonly used loan terms.
You can customize these tables to your own needs by adjusting the "Principal," "Time," and "Rate" components as well as the "Prepaid Finance Charge" field. You can adjust the rate increment to meet your bank's needs and any of the other components.
Changes should be made by and/or verified by someone familiar with the Excel formulas used in these computations. The formulas and input fields are not protected. Neither BOL nor Charlie Geimer are able to provide technical support for changes.
The APR is influenced by the Fed calendar and the days from consummation until the first payment. To keep things simple these tables use a standard 30 day period for even payment streams. That 30-day period should be denoted to your consumers with the disclaimer that their actual APR may vary slightly from this quote because of that.
First published on 07/15/2011
Last updated on 2012-05-21